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Sun City issues $59 million of bonds on January 1, 2024 that pay interest semiannually on June 30 and December 31. A portion of the
Sun City issues $59 million of bonds on January 1, 2024 that pay interest semiannually on June 30 and December 31. A portion of the bond amortization schedule appears below: Date 01/01/2024 06/30/2024 Cash Paid Interest Expense Decrease in Carrying Value. Carrying Value $69,123,861 12/31/2024 $3,540,000 3,540,000 $3,456,193 3,452,003 $83,807 87,997 69,040,054 68,952,057 Required: 1. Were the bonds issued at face amount, a discount, or a premium? 2. What is the original issue price of the bonds? 3. What is the face amount of the bonds? 4. What is the stated annual interest rate? (Hint: Be sure to provide the annual rate rather than the six-month rate.) 5. What is the market annual interest rate? (Hint: Be sure to provide the annual rate rather than the six-month rate.) 6. What is the total cash paid for interest assuming the bonds mature in 20 years? 1. The bonds were issued at: 2. Original price 3. Face amount 4. Stated annual interest rate % 5. Market annual interest rate % 6. Interest paid
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